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European Central Bank Survey
Cites Risks to Economic Growth

By

Nina Koeppen and

Monica Houston-Waesch

Updated Jan. 19, 2008 12:01 a.m. ET

FRANKFURT -- The European Central Bank offered fresh evidence that the credit-market turmoil could dent economic growth, noting in its January bank-lending survey that euro-zone credit standards tightened at the end of 2007 and will tighten further early this year.

"The sharp [fourth-quarter] tightening reflects the deterioration of financial market conditions since the start of the financial turmoil last summer and a worsening of banks' situation," the ECB said.